Question 1

If income were equally distributed among households,

Accepted Answer

A)   each household's relative share of income would increase.
B)   each household's relative share of income would decrease.
C)   the top fifth of households would have 50 percent of the income.
D)   50 percent of the households would receive exactly 50 percent of the income.E) A) and D)
F) A) and B)

Question 2

The 2008 U.S.distribution of income shows that the top 5 percent of families have approximately what share of income?

Accepted Answer

A)   1 percent
B)   5 percent
C)   10 percent
D)   20 percentE) C) and D)
F) All of the above

Question 3

Of the four countries below,which has the highest degree of income inequality?

Accepted Answer

A)   Japan
B)   Brazil
C)   South Africa
D)   United StatesE) A) and B)
F) A) and C)

Question 4

"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

Accepted Answer

A)   utilitarianism
B)   liberalism
C)   libertarianism
D)   republicanismE) A) and B)
F) A) and C)

Question 5

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Accepted Answer

A)   trickle-down effects.
B)   enhancing market efficiency.
C)   redistributing income.
D)   maintaining the status quo income distribution.E) A) and B)
F) A) and C)

Question 6

The poverty rate is a measure of the percentage of people whose incomes fall below

Accepted Answer

A)   a relative level of income.
B)   an absolute level of income.
C)   the median income for a family of three.
D)   the bottom 20 percent of the income distribution.E) B) and C)
F) A) and D)

Question 7

A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it

Accepted Answer

A)   encourages illegitimate births because single women with children receive higher payments.
B)   rewards laziness because it provides payments to those with low incomes regardless of their work effort.
C)   does not help the poor who are unemployed.
D)   creates unemployment by increasing the wage paid to unskilled workers above the equilibrium wage.E) B) and D)
F) C) and D)

Question 8

Table 20-3
The Distribution of Income in Hapland
 
-Refer to Table 20-3.According to the table,what percent of families in Hapland have income levels below $90,000?

Accepted Answer

A)   20 percent.
B)   40 percent.
C)   60 percent.
D)   80 percent.E) B) and D)
F) All of the above

Question 9

Which philosopher claimed that the government should aim to maximize the well-being of the worst-off person in society?

Accepted Answer

The answer of Which philosopher claimed that the government should...

Question 10

What percent of families are poor for eight or more years?

Accepted Answer

A)   more than 20 percent
B)   between 15 and 20 prcent
C)   approximately 10 percent
D)   less than 3 percentE) All of the above
F) A) and D)

Question 11

Figure 20-1 
-Refer to Figure 20-1.The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Accepted Answer

A)   increased steadily but by approximately half of the increase in the earnings of women.
B)   decreased while the earnings of women increased.
C)   stayed relatively constant while the earnings of women increased.
D)   decreased by substantially more than the decrease in the earnings of women.E) B) and D)
F) B) and C)

Question 12

Of the four countries below,the country that has the most income equality is

Accepted Answer

A)   Japan.
B)   Brazil.
C)   South Africa.
D)   the United States.E) A) and D)
F) B) and C)

Question 13

When John F.Kennedy said,"A rising tide lifts all boats," to what was he referring?

Accepted Answer

A)   With government intervention,all citizens receive a greater allocation of resources.
B)   With market forces working independently,everyone receives an equitable share of resources.
C)   With economic growth,more families are pushed above the poverty line.
D)   None of the above are correct.E) C) and D)
F) All of the above

Question 14

The goal of liberalism is to

Accepted Answer

A)   redistribute income based on the assumption of diminishing marginal utility.
B)   redistribute income in order to improve the well-being of the worst-off person in society.
C)   punish crimes and enforce voluntary agreements but not to redistribute income.
D)   measure happiness and satisfaction.E) A) and D)
F) B) and C)

Question 15

A negative income tax system would

Accepted Answer

A)   make taxes more regressive.
B)   sever the link between tax policy and income distribution.
C)   collect from high-income households and give transfers to low-income households.
D)   eliminate progressive tax rates.E) A) and B)
F) A) and C)

Question 16

Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families.

Accepted Answer

A) True 
 B)False

Question 17

Comparing the United States household income distribution to other countries is

Accepted Answer

A)   easy,because data is available for all countries in the world.
B)   easy,because some countries collect data on expenditures instead of incomes.
C)   problematic,because international agreements require countries to standardize their income accounting procedures.
D)   problematic,because countries collect data in different ways.E) All of the above
F) B) and C)

Question 18

A follower of liberalism would not support a redistribution of income but rather would focus on equalizing opportunities.

Accepted Answer

A) True 
 B)False

Question 19

The 2008 U.S.distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Accepted Answer

A)   $175,000 and over
B)   $200,000 and over
C)   $225,000 and over
D)   $250,000 and overE) A) and B)
F) All of the above

Question 20

Explain what is meant by "in-kind transfer" programs.Briefly outline the advantages and disadvantages of an in-kind transfer program.

Accepted Answer

An in-kind transfer program distributes ...

Exam 20: Income Inequality and Poverty

Explain what is meant by "in-kind transfer" programs.Briefly outline the advantages and disadvantages of an in-kind transfer program.

Correct AnswerverifiedAn in-kind transfer program distributes ...View AnswerShow Answer

Table 20-3 The Distribution of Income in Hapland -Refer to Table 20-3.According to the table,what percent of families in Hapland have income levels below $90,000?

Correct AnswerverifiedShow Answer

Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families.

Correct AnswerverifiedShow Answer

"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?

Correct AnswerverifiedShow Answer

Figure 20-1 -Refer to Figure 20-1.The ratio of female-to-male earnings has increased steadily from about 1980 to 2008 because the earnings of men

Correct AnswerverifiedShow Answer

The poverty rate is a measure of the percentage of people whose incomes fall below

Correct AnswerverifiedShow Answer

A follower of liberalism would not support a redistribution of income but rather would focus on equalizing opportunities.

Correct AnswerverifiedShow Answer

The 2008 U.S.distribution of income shows that the top 5 percent of families earn approximately how much income per year?

Correct AnswerverifiedShow Answer

Of the four countries below,which has the highest degree of income inequality?

Correct AnswerverifiedShow Answer

The goal of liberalism is to

Correct AnswerverifiedShow Answer

A disadvantage associated with an Earned Income Tax Credit (EITC) program to reduce poverty is that it

Correct AnswerverifiedShow Answer

Of the four countries below,the country that has the most income equality is

Correct AnswerverifiedShow Answer

What percent of families are poor for eight or more years?

Correct AnswerverifiedShow Answer

Comparing the United States household income distribution to other countries is

Correct AnswerverifiedShow Answer

The 2008 U.S.distribution of income shows that the top 5 percent of families have approximately what share of income?

Correct AnswerverifiedShow Answer

The concept of diminishing marginal utility is embedded in the utilitarian rationale for

Correct AnswerverifiedShow Answer

Which philosopher claimed that the government should aim to maximize the well-being of the worst-off person in society?

Correct AnswerverifiedShow Answer

When John F.Kennedy said,"A rising tide lifts all boats," to what was he referring?

Correct AnswerverifiedShow Answer

If income were equally distributed among households,

Correct AnswerverifiedShow Answer

A negative income tax system would

Correct AnswerverifiedShow Answer

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An in-kind transfer program distributes ...
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